Kinship ties, social networks, and segmented labor markets: Evidence from the construction sector in Egypt

This paper tests for rationing of entry into craft occupations in the construction labor market in Egypt and investigates whether entry is rationed according to regional origin and access to kinship and other social networks. I use a modified version of Roy's model of occupational choice which allows for the existence of costs of entry into craft occupations. Data from a 1988 survey of construction workers are used to estimate the model and test for rationing. The results confirm the existence of rationing according to a worker's regional background, but are inconclusive with respect to kinship ties and social networks.